All of the following are lease structures or leasehold estates EXCEPT
Correct Answer
D) Life estate
A gross lease and a percentage lease describe how rent and operating expenses are allocated between landlord and tenant, and a periodic tenancy is a leasehold estate that runs from period to period until proper notice ends it. A life estate is a freehold estate measured by the duration of someone's life: its holder owns an interest in the land rather than possessing it as a tenant under a lease. The freehold-leasehold line is what separates it from the other three.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Community property is a form of ownership recognized in certain states where property acquired during marriage is considered equally owned by both spouses, regardless of who earned the money or whose name is on the title.
Condominium ownership involves owning a unit of airspace within a multi-unit building plus an undivided interest in the common elements shared with other unit owners. Each unit is separately taxed and financed.
In a cooperative (co-op), the building is owned by a corporation, and residents purchase shares of stock in the corporation that entitle them to a proprietary lease on a specific unit. Residents are shareholders, not property owners.
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Which of the following is NOT a leasehold estate classified by how long the tenant's possession lasts?
- → An owner lets a friend stay in a cottage with the owner's consent, with no fixed term, no rent due on any regular schedule, and the understanding that either party may end the arrangement at any time. What type of tenancy is this?
- → At move-in, the landlord collects money that may later be used for unpaid rent or damage beyond ordinary wear and tear. What is that payment called?
- → A residential tenant stops paying rent after the landlord ignores two months of written requests to repair a furnace that failed in mid-winter. The tenant stays in the unit and defends the landlord's suit for the unpaid rent. Which doctrine most directly supports the tenant's defense?
- → A property manager of a 40-unit apartment complex budgets $75 per unit per month, or $3,000, into a dedicated account, and $36,000 accumulates over twelve months. The account is designated solely for foreseeable repair and upkeep needs such as exterior painting, roof patching and appliance repair, and not for the manager's compensation or for day-to-day operating costs. Which budget item does the dedicated account represent?
- → Which of the following is NOT normally part of a property manager's obligations to the owner?
- → A property manager prepares an annual operating budget that includes money set aside for roof repairs, painting, and other expected upkeep. What is that set-aside commonly called?
- → What is a 'triple-net lease' (NNN) in commercial real estate?
- → A commercial tenant wants to sublease half of her leased space to another business. The original lease is silent on subleasing. Can the tenant sublease the space?
- → A commercial landlord offers a new tenant a rent-free period of three months at the beginning of a five-year lease. What is this incentive commonly called?
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Previous Question
A national clothing retailer signs a mall lease requiring $5,000 monthly base rent plus 6% of gross sales above a natural breakpoint of $83,333 per month. In a December holiday month, the store rings up $150,000 in sales and the landlord receives $5,000 in base rent plus an additional $4,000 calculated as 6% of the amount above the breakpoint, for $9,000 total. In slow months when sales never cross the breakpoint, the landlord receives only the base rent. Which lease structure did the retailer and landlord enter?
Next Question
Which of the following is NOT a leasehold estate classified by how long the tenant's possession lasts?